The Street awaits key inflation report next week as banking worries persist

US Treasury Secretary Janet Yellen testifies before the Senate Finance Committee on the proposed budget request for 2024, on Capitol Hill in Washington, DC, March 16, 2023.

Andrew Caballero-reynolds | AFP | Getty Images

Another week, another important piece of inflation data for the market to digest.

The personal spending and income report, out this coming Friday, has the Federal Reserve’s preferred measure of inflation: the core personal consumption expenditure (PCE) price index. The Fed likes this reading because it looks at changes in consumer behavior, including whether buyers are substituting goods based on prices. In comparison, the consumer price index (CPI), released this past week, only tracks price changes over time.